Many people are unaware of the rule
Over half of UK adults are unaware that they could potentially reclaim VAT on purchases made during their EU holidays, suggesting many might be missing out on significant savings, according to research conducted for trade association Abta. The survey revealed that 51% of respondents had no idea of the possibility of claiming back VAT on certain goods.
The study found younger travellers to be more clued up, with 69% of 18 to 34 year olds aware of the opportunity to claim, compared to just 38% of those over 65 and a mere third (33%) of individuals aged 55 to 64. This data was gathered from a sample of 1,000 people in September.
Abta explained that in many countries, holidaymakers can reclaim VAT on eligible items purchased from participating retailers when they bring them home, as long as the correct procedures are followed prior to leaving the EU. However, it noted that spending thresholds and refund rates differ across Europe.
The association, which represents UK travel agents, tour operators and the broader travel industry, advised that tourists would need to request a tax-free form at the point of purchase and present their passport. Refunds may be processed upon departure from the EU, at an airport, port or train station, where kiosks or stands will be available, Abta added.
The organisation warned that certain goods and services might be exempt from refunds, with typical exclusions including alcoholic beverages and tobacco, food and beverages consumed on the spot, and products utilised during the stay, reports Bristol Live.
Abta’s communications director Graeme Buck commented: “Nobody wants to miss out on money which they are entitled to.” He added: “Be a VAT victor and know how to claim VAT refunds to make those holiday spending sprees in Europe go that little bit further. It’s always worth asking at the till to see if your purchase is eligible.”
Abta’s recommends travellers should:
1. Ask at the till if the shop offers VAT refunds for non-EU residents
2. Keep your receipts and complete the refund form at the point of purchase
3. Before leaving the EU, get your forms validated at the kiosks at your departure point